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BBB Urges Financial Reset for New Year

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  Published in Business and Finance on Thursday, January 8th 2026 at 5:47 GMT by South Bend Tribune

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South Bend, IN - January 8th, 2026 - As the calendar turns to a new year, the Better Business Bureau (BBB) serving Northern Indiana is issuing a timely call to action: take decisive control of your personal finances. With holiday spending often leaving a temporary dent in budgets, the BBB emphasizes that January is an ideal moment to establish strong financial habits and build a more secure future.

Rick Rumple, President and CEO of the BBB, stresses the importance of a proactive approach. "The post-holiday period frequently presents a financial challenge for many," Rumple explains. "It's a prime opportunity to reset, reassess, and actively manage your finances, preventing short-term dips from becoming long-term difficulties."

But financial health isn't just about avoiding post-holiday debt; it's a holistic approach encompassing budgeting, credit awareness, scam vigilance, and informed borrowing. The BBB lays out several key steps consumers can take now to improve their financial standing.

Building a Foundation: The Power of Budgeting

The cornerstone of any sound financial plan is a realistic and diligently maintained budget. This isn't simply about restricting spending, but about understanding where your money goes. By meticulously tracking income and expenses, you gain a clear picture of your spending patterns and identify areas where adjustments can be made. The good news is, creating a budget doesn't require complex spreadsheets. Numerous user-friendly apps and online tools are available - many are free - that automate tracking and categorization, making the process significantly easier.

Know Your Numbers: Credit Reports & Scores

Beyond budgeting, understanding your credit health is crucial. Consumers are entitled to a free credit report annually from each of the three major credit bureaus: Equifax, Experian, and TransUnion. It's not enough to simply receive this report; you must review it carefully. Look for inaccuracies, errors, or any signs of fraudulent activity, such as accounts you didn't open or unauthorized charges. Promptly dispute any errors you find.

Your credit score, derived from the information in your credit report, is a critical factor in securing loans, credit cards, and even renting an apartment. A higher score translates to better interest rates and more favorable terms, potentially saving you thousands of dollars over the lifetime of a loan. Regularly monitoring your credit score (many services offer this for a fee, or as part of a broader financial package) allows you to identify potential issues and proactively improve your standing.

Shielding Yourself: Scam Awareness and Predatory Lending

The BBB also warns of increased scam activity, particularly targeting individuals experiencing financial strain. Scammers prey on vulnerability, offering unrealistic promises or exploiting urgent situations. Be extremely cautious of unsolicited offers, "too good to be true" deals, and requests for personal information over the phone or online. Always verify the legitimacy of any offer before providing any details.

Furthermore, consumers should be wary of predatory lending practices. These lenders offer loans with exorbitantly high interest rates and hidden fees, designed to trap borrowers in a cycle of debt. Before accepting any loan, shop around and compare offers from multiple lenders, paying close attention to the Annual Percentage Rate (APR) and all associated fees. Consider credit unions and community banks as alternative options, often offering more favorable terms.

Seeking Guidance: When to Call in the Experts

While these steps are manageable for many, the BBB acknowledges that financial complexities can sometimes overwhelm individuals. If you find yourself struggling to manage your finances, don't hesitate to seek professional help. A qualified financial advisor can provide personalized guidance, develop a tailored financial plan, and help you navigate challenging situations.

Taking control of your finances isn't a one-time task; it's an ongoing process. By embracing these principles and making proactive choices, you can build a more secure financial future for yourself and your family.